Twenty rigs are planned to be built in Saudi Arabia over the next 10 years

Rowan Cos. PLC and Saudi Arabian Oil Company said Monday that they would launch a new joint venture to own, operate and manage offshore drilling rigs that will be built in Saudi Arabia in a move designed to bolster the country’s expertise in building rigs.

The join venture plans to build 20 new rigs over the next 10 years, with Saudi Arabian Oil, also known as Aramco, providing drilling contracts to support the new company. Newbuild...